Company Remains Ahead of Schedule in Completing Network Construction
BROOMFIELD, Colo., October 3, 2000 – Level 3 Communications, Inc. (Nasdaq:LVLT) today announced it has completed construction of more than 15,000 miles of its 16,000-mile North American intercity network through the third quarter.
"We continue to remain ahead of schedule in the completion of construction along our North American and European intercity networks," said Kevin O'Hara, president and chief operating officer for Level 3. "Our multi-conduit network design allows us to deploy newer generations of fiber as they become available, enabling us to reduce unit costs so that our customers can enjoy greater cost advantages."
Level 3 designed its North American and European networks to be continuously upgradeable. Constructed with multiple conduits, these networks allow Level 3 and its customers to take advantage of ongoing improvements in optical fiber technology. As new optical fiber technology is developed, Level 3 can install it through one of the network's empty conduits, rather than having to reconstruct the network.
Traditional networks are heavily invested in past or present technology with limited or no upgrade paths. Level 3 is in the process of installing fiber throughout one of the conduits in its intercity network in North America and Europe. The company announced in late August that it plans to begin deploying a new generation of LEAF fiber from Corning through a second conduit in its North American intercity network in the first quarter of 2001.
Level 3 also recently announced that it has completed construction and installed fiber in Ring 1 of its European intercity network, which connects London, Amsterdam, Frankfurt, Paris and Brussels. Level 3 expects to complete construction of Ring 2 of its European intercity network during the fourth quarter of this year.
Network Activation
As Level 3 completes construction of the conduits along its intercity network and installs fiber throughout the first conduit, it will continue activating segments. A number of Level 3 services have already been sold on the activated portions, including Global Wavelengths, private lines and other network services. "We've been ahead of schedule in terms of activating our network, as well," said O'Hara. "As we migrate customer traffic to activated portions of our network, we are able to lower our operational costs and enable our IP intensive customers to bypass congested Internet traffic exchange points and, in turn, offer improved performance and service to their business and residential customers."
Metropolitan Networks
Level 3 currently offers service over leased or owned metropolitan networks in 47 U.S., European and Asian cities, which are interconnected by Level 3's intercity networks across the U.S. and Europe, and joined by transoceanic cable. Of these 47 cities, Level 3 has built and operates its own metropolitan networks in 26 U.S. markets and 5 European markets.
In the United States, Level 3 has metropolitan broadband networks in Atlanta, Baltimore, Boston, Chicago, Cincinnati, Dallas, Denver, Detroit, Houston, Jersey City, Long Island, Los Angeles, Miami, New York, Newark, Orlando, Philadelphia, Phoenix, San Diego, San Francisco, San Jose, Seattle, St. Louis, Stamford, Tampa and Washington, D.C.
In Europe, Level 3 has completed and operates metropolitan networks in Amsterdam, Brussels, Frankfurt, London and Paris.
(*Softswitches are advanced software based switching systems that enable Level 3 to provide services combining the best features of the Internet and traditional telephone networks.)
About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT), an international communications company, operates one of the largest Internet backbones in the world, connecting 180 markets in 18 countries. The company serves a broad range of wholesale, enterprise and content customers with a comprehensive suite of services including: Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice and voice over IP services, content delivery and media distribution services. These services provide the building blocks to enable Level 3’s customers to meet their growing demands for advanced communications solutions. The company’s Web address is www.Level3.com.
"Level 3 Communications,” "Level 3," the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein may be trademarks or service marks of their respective owners.
Forward-Looking Statement
Some of the statements that we make in this press release are forward looking in nature. These statements are based on management’s current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside our control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent us from achieving our stated goals include, but are not limited to our ability to: successfully integrate acquisitions; increase the volume of traffic on our network; defend our intellectual property and proprietary rights; develop new products and services that meet customer demands and generate acceptable margins; successfully complete commercial testing of new technology and information systems to support new products and services; attract and retain qualified management and other personnel; and meet all of the terms and conditions of our debt obligations. Additional information concerning these and other important factors can be found within Level 3’s filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
